Risk of Recovering Capital Investments Due to Demand Fluctuations
First written in FY2016. 7 of 10 entries say "Materialised", first in FY2017. Latest entry: FY2026.
Ibiden moved to the "Worse" side of this theme in 2017, 5 years before the typical company in this theme (2022).
The whole theme swung hardest in 2024: 10 of 25 companies on the "Worse" side.
5 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「For business assets whose initially projected earnings could no longer be expected, the carrying amounts were reduced to the recoverable amounts, and the reductions were recognized as impairment losses of ¥10,630 million under extraordinary losses.」
The risk of recovering capital investments arising from delayed demand recovery and price competition materialized during the full fiscal year as an impairment loss of ¥10,630 million on business assets in the Philippines. - 2026-05-11MaterialisedOccurring Fact
「Because significant demand growth was not foreseeable, the Company's future business plans were conservatively revised, resulting in indications of impairment. After carefully examining future recoverability, the carrying amount of the Company's fixed assets was reduced to recoverable amount, and an impairment loss of ¥10,630 million was recorded.」
Conservative revisions to future business plans and lower recoverability resulting from weak prospects for demand growth materialized as a ¥10,630 million impairment loss on fixed assets at IBIDEN Philippines. - FY2026-H1MaterialisedAnnual report
「The Other segment recognized an impairment loss of ¥506 million on idle assets.」
The decline in the profitability and recoverability of idle assets was recognized as an impairment loss of ¥506 million during the current interim period. - FY2025MaterialisedAnnual report
「For business assets whose initially projected earnings could no longer be expected, the carrying amounts were reduced to the recoverable amounts, and the reductions were recognized as impairment losses of ¥15,537 million under extraordinary losses.」
Against a backdrop of delayed recovery in the Electronics business market, commoditization and intensifying price competition, an impairment loss of ¥15,537 million was recognized on the business assets of Ibiden Philippines. - FY2024MaterialisedAnnual report
「During the current consolidated fiscal year, the Group recognized impairment losses on the following assets. For these idle assets, the carrying amounts were reduced to the recoverable amounts, and the reductions were recognized as impairment losses of ¥573 million under extraordinary losses.」
The risk of recovering capital investments related to idle assets materialized as an impairment loss of ¥573 million, down from ¥843 million in the previous fiscal year. - FY2023RestatedAnnual report
「The Group makes investment decisions based on forecasts of future demand and the Group’s competitiveness, taking investment efficiency into account, but if it is unable to secure the volume of orders initially expected due to competitors’ development and market-entry trends or changes in demand for end products, this could have a significant effect on the Group’s operating results and financial position.」
While continuing large-scale capital investment, the company reconfirms its policy of managing investment efficiency and the risk of recovering investments due to changes in demand forecasts, competitors’ market entry and order volumes. - FY2023-Q3MitigatedAnnual report
「There are no matters of particular note.」
The segment information states that there were no matters requiring special mention regarding impairment of property, plant and equipment for the cumulative third quarter of the current fiscal year, and impairment losses decreased from ¥1,030 million in the same period of the previous year to ¥95 million. The impact of the risk of recovering capital investments due to demand fluctuations was smaller than in the same period of the previous year. - FY2022-Q2MaterialisedAnnual report
「For idle assets not attributable to any segment, the Group reduced the carrying amount to the recoverable amount. The resulting impairment loss was ¥971 million for the cumulative third quarter of the current consolidated fiscal year.」
The asset recovery risk associated with lower profitability of idle assets and demand fluctuations was recognized as an impairment loss of ¥971 million in the cumulative second quarter. - FY2017MaterialisedAnnual report
「The Group reduced the carrying amount to the recoverable amount for business assets whose initially projected earnings could no longer be expected due to a review of the production system or restructuring of the business structure, and for idle assets not expected to be used as a result of the review of the production system.」
Impairment and other losses have actually occurred on assets whose initially projected earnings could no longer be expected due to changes in demand and the order environment. - FY2016First statedAnnual report
「If the Group is unable to secure the volume of orders initially expected due to competitors’ development and market-entry trends or changes in demand for end products, this could have a significant effect on the Group’s operating results and financial position.」
While the Group plans further capital investment to develop production bases in Japan and overseas, it identifies demand forecasts and uncertainty over order volumes as risks.